Vancouver (PRWEB) August 20, 2005
Solomon Resources Ltd. (SRB:TSX-V) is pleased to announce that it has signed a Letter of Intent (ÂLOIÂ) with Brett Resources Ltd. (ÂBrettÂ) to grant an option to Brett on SolomonÂs 100% owned Sleitat Mountain Tin-Silver-Tungsten Deposit, located in the Taylor Mountains Quadrangle, Southwest Alaska. The Sleitat Mountain Project contains 3,520 acres (1,425 hectares), located approximately 135 km northeast of the coastal town of Dillingham. The deposit outcrops in a saddle on Sleitat Mountain, where tin, tungsten and silver mineralization occurs in an east-west trending, steeply dipping zone that extends at least 975 meters along trend. See Solomon News Release dated July 7, 2005 for additional information.
Under the terms of the LOI, and subject to approval by the Exchange, Brett can acquire an 80% interest in the Sleitat Mountain property and then form a joint venture (ÂJVÂ) with Solomon by issuing 1,000,000 shares to Solomon within a four year period, on the following terms and conditions:
- 200,000 shares upon signing the LOI and receiving approval from the TSX Venture Exchange.
- 200,000 shares on each of the next four anniversaries of the LOI, so long as Brett has not terminated its interest in the option.
- On the third anniversary, Brett can accelerate its acquisition of an interest by also issuing the remaining 200,000 shares to Solomon, and earning its 80% interest.
- Prior to earning its 80% interest, Brett will be required to make all lease payments and work commitments required by the State of Alaska.
- Upon earning its 80% interest, a formal Joint Venture Agreement will be entered into by Solomon and Brett. Should either party subsequently not fund their pro rata share of subsequent work or development programs their interest would be diluted.
- If either party dilutes to less than a 10% participating interest in the JV, the interest of such party in the JV and the Property shall terminate, subject to such party retaining a 1% NSR royalty on any production of metals from the Property.
- Deemed expenditures at the time of vesting and formation of the JV will be based on actual dollars spent by Brett on all work programs, project management, and other required obligations and SolomonÂs deemed value at that time would equal 25% of that amount.
Qualified Person under National Instrument 43-101
David W. Tupper, P.Geol. a Âqualified personÂ for the purposes of National Instrument 43-101, has reviewed the information contained in and supervised the preparation of this news release.
Forward Looking Statements
Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Solomon Resources Ltd. Actual results may differ materially from those currently anticipated in such statements.
About Solomon Resources Ltd.
Solomon also has significant base and precious metal exploration holdings in Mongolia and has recently begun exploration on its Bayantsagaan, Onon, and Chandman Gold Projects. SolomonÂs shares trade under the banner SRB on the TSX Venture Exchange (TSX-V). For additional information visit SolomonÂs website at http://www.solomonresources.ca.
Solomon Resources Ltd. is a Canadian public company focused on the acquisition, exploration and development of gold and base metal mineral properties world wide. The Company is managed by a proven team of explorationists credited with the discovery and/or development of a number of significant deposits in the world, including the SNIP and Eskay Creek Mines in British Columbia; the Brewery Creek Mine in the Yukon, and the Segala Gold Deposit in Mali, West Africa.
On Behalf of the Board of Directors of
Solomon Resources Limited
ÂKeith LaskowskiÂ, President and Chief Operating Officer
Keith A. Laskowski, President
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
# # #